Business

Dec 8, 2012 | 02:15

U.S. Week Ahead:"Cliff" talks intensify; Fed terminates twist

Dec 7 - Tense negotiations are expected to continue as President Barack Obama and House Speaker John Boehner try to find compromise on a deal to avert the fiscal cliff and a framework for a larger deficit reduction plan.

TRANSCRIPT +

Three more weeks until we reached the cliff and still no deal in -- President Obama and lawmakers will meet again next week behind closed doors as negotiations intensified. Today Republican house speaker John Boehner accused the president pushing the country further toward the fiscal cliff. Boehner telling reporters at the capitol that the administration's adopted in his words of my way or the highway approach as engaging in when he called reckless talk. He took particular offense to Treasury Secretary Tim Geithner comments that the administration is prepared to go over the cliff if tax -- for the rich we're not increase. Obama will visit auto plant in Redford Michigan Monday they'll make the case for raising upper income taxes in keeping tax cuts for the middle class. Friday's positive jobs report being damned it shouldn't have any effect on the Federal Reserve. The FOMC begins a two day policy meeting on Tuesday expect the Fed to maintain its 85 billion dollar amount bond buying program. Until it sees a substantial improvement in the labor market. US Central Bank will -- no plans to buy more long term debt could put pressure more pressure on long term yields. The ten year treasury bill has been yielding less than 2% since April -- still promising to keep its target rate low through mid 2015. After the Fed's announcement console turned their -- to holiday shopping. Retail sales for November out -- on Thursday we'll get an idea just how deeply consumers are digging in their pockets after the holiday shopping season kicked off last month. Economists expects sales last month bounced back after being dragged lower in October once you start saying he weighed on those sales. Investors will zero in on appeal the big names that could have felt the impact. -- -- -- Dollar General and CommScope especially retailer pier one are on the earnings docket next week. Focus will be on CommScope analysts expect the Bible retailer to reporters have 93 cents a share. More than 60% higher than a year ago number the company also plans to -- a special dividend of seven dollars per share in mid December. And make sure defaults on Twitter Reuters Insider catch -- interviews with top market movers on Reuters TV. I'm Fred Katayama this is sort.

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